Thursday, March 12, 2009

Should I invest now?

This is the million dollar question! I have coached you to accumulate cash since the beginning last year and if you waste your bullets now, I will strangle you personally!

Some of you will become multi-millionaires in the next few years should you play your cards right. If not, well, you have to wait for the next down cycle.

Over the next 12 months, I assure you more opportunities will emerge. Do not be easily tempted away! And if you feel you have stumbled on the deal of the century, email me first. Everyone and their sons will ask you to part with your cash, what approach should you be adopting.

Anyway, the name of the game is now risk management. Manage your risk and your upside will come. In downtimes, focus on cash flow and yield. Forget investment instruments that locks up your cash without yield. Yields are what will enable you to last through the down cycle. Yields will supplement your income and multiple streams of income are the cornerstone of wealth creation.

I am taking it easy right now, I am sent out feelers that I am looking for bargains. And I am prepared to be patient. Do not expect bargains to emerge soon as many investors have holding power as their personal balance sheets are now stronger compared to the last recession but again, there will be those who cannot hold out. So the key thing is : “ Be Prepared!”.

Doing nothing and maybe shorting the market occasionally is the way to go. There is no blood on the streets yet so hold your horses!

Your Friend
Andy Ong